TotalEnergies abandons offshore gas condensate discovery in South Africa to focus on exploration in areas closer to Namibia. Despite significant resources invested, including more than $400 million and the discovery of approximately 1 billion barrels of oil equivalent in the Brulpadda field in 2019, the French company has not been able to move towards developing these discoveries.
TotalEnergies abandons gas discovery
In the following year, the company found further reserves in the Luiperd well, but none of the exploration has reached a commercially viable stage. The complexities of deepwater and the limited gas market in South Africa have led TotalEnergies to reconsider its approach. The company plans to abandon the license for Block 11B/12B due to these difficulties.
[post_relacionado]Attention will now turn to the Orange Basin, north of South Africa’s Atlantic coast, near important discoveries in Namibian waters. In March, TotalEnergies bought an interest in offshore block 3B/4B in this basin and holds other exploration rights there, in collaboration with several partners. The company is moving forward with the development of its first oil project in Namibian waters.
The decommissioning of the fields in South Africa represents a setback for the country, which is heavily dependent on coal and is seeking to diversify its energy sources. The potential production from these fields had been considered vital to reduce this dependence and supply the gas-to-liquids plant of the state-owned PetroSA.
Announcements of future exploration
Africa Energy Corp, the company’s partner, reported that TotalEnergies is reviewing its options related to oil and gas oil and gas discoveries . CNR International, which holds a 20% interest, has announced its withdrawal from these discoveries. Africa Energy, which has a 10% stake, has no plans to withdraw.
South Africa’s Petroleum Agency spokesman referred queries to TotalEnergies, while South Africa faces challenges in implementing oil and gas projects due to legislative uncertainty and resistance from environmental groups. The expected approval of a new hydrocarbons law has been delayed for years, further complicating the outlook for exploration companies.
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Source: World Oil
Photo: Shutterstock